Alignment Healthcare Reports Fourth Quarter and Full-Year 2024 Results; Provides Full-Year 2025 Financial Guidance

• Reports 189,100 health plan members as of Dec. 31, 2024, up 58.6% year-over-year, beating year-end expectations
• Achieves first full year of positive adjusted EBITDA as a public company, driven by operating leverage and strong medical benefits ratio performance
• Raises midpoint of 2025 health plan membership guidance by 2,000 to reflect strong open enrollment period momentum
• Introduces 2025 revenue guidance of $3.72 billion to $3.78 billion, representing 37.6%-39.6% growth year-over-year, and adjusted EBITDA of $35 million to $60 million

ORANGE, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), today reported financial results for its fourth quarter and full year ended Dec. 31, 2024.

"2024 was a milestone year that proved health plans can win by providing more care, not less,” said John Kao, founder and CEO. "By using our clinical resources and technology to improve outcomes and manage medical expenses, we grew while others pulled back. With strong momentum from the annual enrollment period and industry-leading stars performance, we enter 2025 positioned for success and confident that we are fulfilling our vision for Medicare Advantage done right.”

Fourth Quarter 2024 Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended Dec. 31, 2023.

• Health plan membership at the end of the quarter was approximately 189,100, up 58.6% year over year
• Total revenue was $701.2 million, up 50.7% year over year. Revenue excluding ACO REACH was $700.7 million, up 61.4% year over year
• Adjusted gross profit was $87.9 million and loss from operations was $(22.5) million
  • Adjusted gross profit excludes depreciation and amortization of $6.8 million and selling, general, and administrative expenses of $102.1 million (which includes $14.7 million of equity-based compensation). Adjusted gross profit also excludes an additional $1.5 million of equity-based compensation recorded within medical expenses
  • Medical benefits ratio based on adjusted gross profit was 87.5%
• Adjusted EBITDA was $1.4 million and net loss was $(31.1) million

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Full Year 2024 Financial Highlights

All comparisons, unless otherwise noted, are to the twelve months ended Dec. 31, 2023.

• Total revenue was $2,703.6 million, up 48.3% year over year. Revenue excluding ACO REACH was $2,702.6 million, up 59.0% year over year
• Adjusted gross profit was $302.6 million and loss from operations was $(101.6) million
  • Adjusted gross profit excludes depreciation and amortization of $27.1 million and selling, general, and administrative expenses of $371.4 million (which includes $66.2 million of equity-based compensation). Adjusted gross profit also excludes $0.8 of restructuring costs and an additional $4.9 million of equity-based compensation recorded within medical expenses
  • Medical benefits ratio based on adjusted gross profit was 88.8%
• Adjusted EBITDA was $1.3 million and net loss was $(128.1) million

Adjusted Gross Profit is reconciled as follows:

^{(1)  Represents severance and related costs incurred as part of a corporate restructuring, that took place during 2024, designed to streamline our organizational structure and drive operational efficiencies}

^{(2)  Includes $0.6 million in impairment expense related to intangible assets that were written off during the year}

Adjusted EBITDA is reconciled as follows:

^{(1)   Includes $0.6 million in impairment expense related to intangible assets that were written off during the year}

^{(2)   Represents equity-based compensation related to grants made in the applicable year, as well as equity-based compensation related to the timing of the IPO, which includes previously issued stock appreciation rights ("SARs") liability awards, modifications related to transaction vesting units, and grants made in conjunction with the IPO}

^{(3)   Represents acquisition-related fees, such as legal and advisory fees, that are non-capitalizable}

^{(4)   Represents certain litigation costs considered outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy}

^{(5)   Represents gains or losses related to ROU assets that were terminated or subleased in the respective period}

^{(6)   Represents severance and related costs incurred as part of a corporate restructuring, that took place during 2024, designed to streamline our organizational structure and drive operational efficiencies}

Outlook for First Quarter and Fiscal Year 2025